The Bitcoin (BTC) market is facing a challenge in maintaining its position above the $38,000 mark. Still, there is resilience among the bullish sentiment, leading some experts to speculate an increased likelihood of a rally towards the $40,000 threshold.
For two consecutive days, Bitcoin has been striving to stay above the resistance level of $38,000, aiming to initiate the next phase of its upward trajectory. Recent developments, such as the United States Securities and Exchange Commission (SEC) postponing its decision regarding Franklin Templeton and Hashdex exchange-traded fund (ETF) applications, have sparked curiosity in the market.
In a recent post on X (formerly Twitter), Bloomberg ETF analyst James Seyffart suggested that the SEC’s decision delay might be a strategic move to potentially approve all applicants by the January 10, 2024 deadline.
While many market analysts anticipate approving ETF listings as a pivotal moment for Bitcoin, Joshua Lim, the head of derivatives at Genesis Trading, provided a cautious perspective in a separate X post. Lim pointed out that traditional finance investors may have already acted on the rumour, potentially leading to an exit from the trade when the ETF announcement approaches, especially as retail investors attempt to enter the market.
However, the macroeconomic conditions in early 2024 may limit the downside. In an interview with Bloomberg, Pershing Square Capital Management CEO and founder Bill Ackman, they are told that the U.S. Federal Reserve will cut rates sooner than people expect. He anticipates rate cuts to start in Q1 instead of the market expectations of the middle of the year.
Could Bitcoin and altcoins witness a shallow correction before resuming their uptrend?
Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) price analysis
Bitcoin again rose above the $37,980 resistance on November 28, but the bulls could not achieve a close above it. This shows that the bears are fiercely defending the level.
The repeated retest of a resistance level tends to weaken it. If bulls sustain the price above the 20-day exponential moving average ($36,820), the possibility of a rally to $40,000 improves. This level may act as a significant hurdle.
Bears must quickly pull the price below the 20-day EMA and the uptrend line if they want to prevent the up-move. That could start a decline to the solid support at 34,800. A strong bounce off this level may keep the BTC/USDT pair between $34,800 and $38,000 for a while longer.
Ether (ETH) price analysis
Ether again found support at the 20-day EMA ($2,006) on Nov. 27 and 28, indicating that the bulls view the dips as a buying opportunity.
The bulls are expected to face stiff resistance in the zone between $2,137 and $2,200, but if buyers do not give up much ground, it will increase the possibility of a rally above $2,200. The ETH/USDT pair will complete a large ascending triangle pattern if that happens. That could start a new uptrend, with a pattern target of $3,400.
Instead, if the price turns down and breaks below the 20-day EMA, it will signal that the bears are trying to get back in the game. The pair may then slump to the 50-day SMA ($1,853).
BNB price analysis
The bears tried to yank BNB below the $223 support on November 27, but the bulls did not relent. This suggests demand at lower levels.
The bulls must force the price above the 20-day EMA ($235) to start a meaningful recovery. The BNB/USDT pair could then attempt a rally to $265, where the bears may again offer a stiff resistance.
If the price again turns down from the 20-day EMA, it will suggest that the bears are trying to flip the level into resistance. That will enhance the prospects of a fall below $223. If this level gives way, the pair may collapse to $203.
XRP price analysis
XRP has been stuck between the moving averages for the past few days, indicating indecision among the bulls and the bears.
The slightly downsloping 20-day EMA ($0.61) and the RSI near the midpoint do not indicate an advantage to the bulls or the bears.
If buyers kick the price above the 20-day EMA, the XRP/USDT pair may rise to $0.67. Instead, if the price turns sharply from the 20-day EMA and skids below the 50-day SMA ($0.58), it will signal that bears are trying to seize control. The selling could accelerate further if the pair plunges below $0.56.
Solana (SOL) price analysis
Solana returned from the 20-day EMA ($54.71) on November 28, indicating that the sentiment remains positive.
The bulls will try to push the price above the immediate resistance at $62.10. The SOL/USDT pair could climb to the local high at $68 if they succeed. The bulls will have to overcome this obstacle to invalidate the head-and-shoulders pattern. The failure of a bearish pattern is a bullish sign. That may start a sharp rally in the pair to $85.
The $51 level remains the critical support on the downside. A break and close below this level could start a deeper correction toward the 50-day SMA ($42.25).
Cardano (ADA) price analysis
Cardano slid to the 20-day EMA ($0.38) on November 27, but the bulls held their ground. This suggests that lower levels are being aggressively bought.
The higher lows of the past few days improve the prospects of an upside breakout. If the bulls shove the price above $0.40, the ADA/USDT pair could pick up momentum and climb to $0.42 and later to $0.46.
Time is running out for the bears. They must tug the price below the 20-day EMA to make a comeback. That may hit short-term traders’ stops, and the pair may fall to solid support at $0.34.
Dogecoin (DOGE) price analysis
Dogecoin has repeatedly taken support at the 20-day EMA ($0.08), indicating that lower levels are being purchased.
The upsloping moving averages and the RSI in the positive territory indicate that the path of least resistance is to the upside. Buyers will try to propel the price to $0.09 and then to $0.10, where they will likely encounter selling by the bears.
On the downside, the 20-day EMA remains critical to watch out for. If this level crumbles, the DOGE/USDT pair may drop to the 50-day SMA ($0.07) and the crucial support at $0.06.
Toncoin (TON) price analysis
Toncoin has been trading above the 20-day EMA ($2.37) for the past few days, but the bulls are struggling to push the price to $2.59. This suggests that demand dries up at higher levels.
The bears will try to gain the upper hand by yanking the price below the moving averages. If they manage to do that, the TON/USDT pair could decline to the psychological level of $2 and then to $1.89.
On the upside, the first hurdle is at $2.59. If buyers surmount this resistance, the pair could rally to $2.77. Sellers may offer stiff opposition in the zone between $2.77 and $2.90, but if bulls do not allow the price to dip below $2.59, a new uptrend to $4.03 could begin.
Chainlink (LINK) price analysis
Chainlink again found support at the 20-day EMA ($14.07) on November 28, indicating that the bulls are vigorously guarding this level.
The LINK/USDT pair will likely face selling at the $15.40 mark as the bears have successfully held this resistance during three previous attempts. If the price turns down from $15.40, it will increase the likelihood of a drop to $12.83.
On the contrary, if bulls drive the price above $15.40, the pair may challenge the local high at $16.60. The up-move could resume, and the pair may reach $18.30 if this level is surpassed.
Avalanche (AVAX) price analysis
Avalanche rebounded off the 20-day EMA ($19.35) on November 28, indicating that the sentiment remains positive and traders are buying on dips.
The bulls must overcome the resistance at $22 to strengthen their position. The AVAX/USDT pair may then rise to $24.69. Sellers are likely to mount a vigorous defence at this level because if this resistance is taken out, the pair could travel to $28.50 as there is no significant resistance in between.
Contrary to this assumption, if the price turns down from $22, it will suggest that bears remain active at higher levels. The advantage will tilt in favour of the bears if they sink the pair below $18.90.
